Australia has appointed former Rio Tinto (ASX:RIO) executive Kellie Parker to lead the newly established Defence Delivery Agency (DDA) in support of its military ambitions.
In a statement on Tuesday (27 October), the Australian Government announced that Parker will become National Armaments Director from 9 November.
She will replace Nadine Williams, who has held the position on an interim basis.
The role was created earlier this year by Prime Minister Anthony Albanese’s government to improve oversight of defence procurement, with several major military projects facing significant delays and cost overruns.
Parker will also lead the new DDA when it is formally established on 1 July 2027, overseeing the delivery and ongoing maintenance of Australia’s defence capabilities.
Defence Industry Minister Pat Conroy says the appointment would strengthen accountability and efficiency across the country’s military procurement programs.
“This appointment is about bolstering timely, cost-efficient and accountable delivery of capabilities, and getting better bang for buck for the record investment the Albanese government is making in defence,” Conroy states.
The new agency is expected to employ thousands of people and manage an annual budget of approximately $35 billion, according to Conroy.
From mining to defence
Parker brings decades of private-sector experience, having most recently served as CEO of Rio Tinto Australia until June.
During her career with the mining giant, she also held senior leadership roles overseeing its iron ore and aluminium businesses.
Her tenure included managing Rio Tinto’s response to workplace sexual harassment and assault allegations, as well as the company’s efforts to address the fallout from the destruction of the Juukan Gorge Indigenous heritage site in Western Australia.
The 2020 destruction of the ancient rock shelters sparked widespread criticism and ultimately led to the departure of several senior Rio Tinto executives.
According to sources cited by Bloomberg, Parker has close ties to Albanese and is well-regarded by both the ruling Labor Party and the opposition Liberal Party.
Her appointment marks a significant transition from the resources sector to defence, where the government is seeking to apply greater commercial discipline to its procurement operations.
Australia’s military expansion
Parker takes on the role as Australia embarks on one of its largest peacetime military expansions in modern history, driven partly by growing security concerns over China’s expanding presence in the Pacific.
The Government’s plans include doubling the size of its surface fleet, acquiring nuclear-powered submarines, expanding domestic missile and drone manufacturing, and strengthening its defence industrial capacity.
Australia aims to build a fleet of approximately 20 major surface warships, alongside nuclear-powered submarines, by 2040.
However, several major shipbuilding programs have been affected by delays and rising costs, with the country’s existing naval fleet expected to shrink before replacement vessels enter service.
The DDA, which will be fully independent of the Department of Defence, is intended to address these challenges by improving coordination, cost control, and accountability across military acquisition and sustainment projects.
Write to Jackson Chen at Mining.com.au
Image: Curtin University
